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OK so let's say we're making an offer of $500,000 and we're going to be paying cash for $450,000 and adding a $50,000 HELOC or mortgage. Maybe our pre-approval letter should say we are approved for $500k or $600k and then we additionally include proof of funds to show we have the cash.
OK so let's say we're making an offer of $500,000 and we're going to be paying cash for $450,000 and adding a $50,000 HELOC or mortgage. Maybe our pre-approval letter should say we are approved for $500k or $600k and then we additionally include proof of funds to show we have the cash.
Not a bad strategy, although be aware that some sellers may try to squeeze more out of you because you are showing your hand.
Still, you want them to know you can perform as offered without strain.
Now.... If you have the cash, it may be wise to pay all cash and borrow after closing. Nice clean transaction with no third party (lender) involvement and the seller may appreciate that.
We have a HELOC on our current home that will allow us to write a cash offer if we see something we like. No one will have to know it is borrowed money, and we can close as fast as title work is done.
We just haven't seen a property we want.
Not a bad strategy, although be aware that some sellers may try to squeeze more out of you because you are showing your hand.
Still, you want them to know you can perform as offered without strain.
Now.... If you have the cash, it may be wise to pay all cash and borrow after closing. Nice clean transaction with no third party (lender) involvement and the seller may appreciate that.
We have a HELOC on our current home that will allow us to write a cash offer if we see something we like. No one will have to know it is borrowed money, and we can close as fast as title work is done.
We just haven't seen a property we want.
ALL of us over at the Raleigh/Durham/Chapel hill board are going to worry: Are you leaving the area?
Don't you have to own a home in order to get a HELOC? I don't own a home right now.
It's called a purchase money HELOC. It can be a 1st lien or a 2nd lien. In your case it would be a 1st lien. Now here is the crazy part, some lenders will pay your closing costs. We do it on loans 50K and under, but most of the industry that has HELOCS, pays closing costs on loans OVER 50K. Call around. There's some good deals out there.
I just closed on a double wide manufactured home with 50k conventional mortgage. I put 10k down and financing 50k. The interest rate is no different from larger mortgages. The lender did need an appraisal, structural engineer report, and the home has a land survey on file. I have excellent credit I'm not sure if that affected their decision to lend. My first lender changed their mind two weeks after going under contract, but luckily I found another lender who often lends on manufactured homes. 50k is their minimum loan amount. That happened to work perfectly for me because I only had 10k for down payment.
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